I expect most anyone with SPAB interest who relies on TT to file a Form 6251 is filing an incorrect return. TT's calculated amount for SPAB tax exempt interest in Form 6251, line 2g, is incorrect. TT does not use the bond-specific bond premium and accrued interest information I provided when I entered the 1099 information. TT appears to allocate bond premium amortization and accrued interest based on the ratio of SPAB to non-SPAB tax exempt bonds. The necessary information on SPAB premiums and accrued interest for each bond is readily available in the 1099-INT, so it is unclear why it is not used. This results in an incorrect amount in line 2g and therefore an incorrect AMT amount.
I break the 1099-INT receive from the broker into three separate 1099's to input into TT: 1) I input taxable interest (line1 in 1099-INT) and bond premium (line 11) and then accrued interest on taxable bonds when prompted by TT, 2) I input non-SPAB tax exempt interest in line 8 (calculated as line 8 minus line 9) and non-SPAB portion of bond premium (line 13) and then accrued interest on non-SPAB bonds, and 3) I input the SPAB interest amount from line 9 into both line 8 (tax exempt interest) and line 9 (SPAB interest); I then input the SPAB portion of bond premium (line 13) and then accrued interest on SPAB bonds. Since I included all SPAD-related data exclusively in one 1099, with tax exempt interest expense in line 8 equal to SPAB interest expense in line 9, I would think TT would logically conclude that since only SPAB interest is included in the 1099, 100% of the premium and accrued interest is from SPABs as well. Unfortunately, that does not seem to be the case.
How do I get TT to use the specific premium and accrued interest data for line 2g rather than its allocation method? Any tricks in how to input the 1099 data or to turn off allocation?
If not, is there a way to override the incorrect TT amount in line 2g and directly fill line 2g myself?
